Global financial markets saw significant volatility this week after a weak US jobs report, where "bad news became good news" as the market believes the Fed will soon cut interest rates at its upcoming September meeting.

Market Overview

US equities closed with declines across all three major indices on Friday (September 5th, US), with the Dow Jones dropping the most at 0.48%. Oil contracts also fell to $61.9 per barrel. Gold saw a slight increase to $3639 per ounce.

Bitcoin rose to $113,000 but quickly fell back to around $110,000. Most major altcoins traded sideways or saw minor gains. The overall crypto market capitalization stood at $3.91 trillion.

US BTC spot ETFs continued to see outflows, with $160 million leaving the funds on Friday. ETH spot ETFs also experienced significant outflows, totaling over $446 million. This marks a notable shift in sentiment after a period of strong inflows for both asset classes.

Weak US Jobs Report: Bad News Is Good News for Markets

The latest US jobs report paints a picture of a weaker-than-expected labor market. Last month, the economy created only 22,000 jobs, far below the forecast of 75,000 and a sharp decrease from the previous month's 79,000. The unemployment rate held at 4.3%, in line with forecasts but higher than the previous month. The concerning trend is that job growth has been visibly declining since 2022, with data consistently being revised downwards, and some months even seeing negative growth for the first time since 2020. Over the past three months, the US has only added an average of about 30,000 jobs per month—a modest number for a major economy.

The breakdown by industry also shows an imbalance: education and healthcare added 46,000 jobs, but important sectors like manufacturing, business services, and the public sector lost tens of thousands of jobs. This reflects a gradually weakening labor market, raising concerns that the unemployment rate will eventually rise sharply.

This negative data has increased market expectations that the Federal Reserve (Fed) will cut interest rates at its September 17th meeting to 100%. The majority of market participants lean towards a 0.25% cut, but there is also an 11% chance that the Fed might cut by as much as 0.5%. However, a large rate cut could signal that the Fed is seriously concerned about the labor situation, which could add psychological pressure to the market. Furthermore, the CME FedWatch Tool shows that investors believe the Fed could continue to cut interest rates in October and December, for a total reduction of about 0.75% over the next three meetings.

While stock and crypto markets initially react positively to the expectation of rate cuts, this sentiment could quickly give way to concerns about a recession if the Fed acts too late. The next key factor investors are waiting for is the CPI index, which will be released on September 11th. This will be the last crucial data point before the rate decision. If inflation is under control, the Fed will have more room to adjust its policy, thereby reassuring the market. Conversely, any sign of rising CPI will heighten recessionary fears. For now, the market is in a state of stability, but investors remain cautious about potential volatility at the end of the week.

Concurrently, the rate for a 30-year fixed US mortgage has dropped sharply by 0.16% to 6.29%, its lowest level since early October and the largest single-day drop in over a year, following the weaker-than-expected jobs report. This marks a turning point from its May peak of 7.08%, improving affordability for homebuyers. Construction stocks like Lennar, DR Horton, and Pulte also saw price increases due to optimism about a potential real estate market recovery.

SEC and CFTC Host Joint Crypto Roundtable

The SEC and CFTC have issued a joint statement to promote regulatory harmonization and will co-host a public roundtable in Washington, D.C. on September 29, 2025. According to SEC Chairman Paul Atkins and Acting CFTC Chair Caroline Pham, this marks a new era of cooperation between the two agencies, with key goals including: unifying definitions for products and trading venues, simplifying reporting and data standards, adjusting capital and margin frameworks, and implementing coordinated innovation exemptions within their existing jurisdictions.

The two leaders emphasized that the recent staff statements on spot crypto products are just the beginning of this process. The roundtable will be live-streamed on the SEC website, and the agenda and list of participants will be announced later. This unprecedented cooperation between the two main US financial regulators is a very positive sign for the crypto industry, signaling a concerted effort to create a clearer and more unified regulatory framework.

Other Key Crypto & Market Updates

MicroStrategy will not be added to the S&P 500 index. Instead, AppLovin and Robinhood will join the index, effective September 22nd. AppLovin (an advertising technology company) will replace MarketAxess Holdings. Robinhood (a stock trading app) will replace Caesars Entertainment. This news is a disappointment for MicroStrategy and its investors who were hoping for a short-term price boost from inclusion in the index.

Nasdaq has tightened its regulations, now requiring companies to get shareholder approval before issuing stock to raise capital for crypto purchases, a change from the previous rule where only board approval was needed. This increases transparency but also introduces delays and uncertainty. However, MicroStrategy stated that the new rules will not affect its Bitcoin acquisition strategy, as its shareholders have consistently approved its plans.

MARA Holdings increased its Bitcoin holdings to 52,477 BTC as of August 31st after mining 705 BTC in August. This shows continued accumulation by Bitcoin miners.

Sora Ventures, a venture capital firm in Taiwan, has announced a $1 billion fund to invest in Bitcoin treasury companies in Asia. There is an initial commitment of $200 million from regional investors. The fund will focus on companies in Japan, Hong Kong, Thailand, and South Korea, where the use of Bitcoin as a corporate treasury asset is becoming increasingly popular.

This week, American Bitcoin, a company linked to President Trump's family, officially went public after merging with Gryphon Digital Mining. The company's stock rose 15.44% on its first trading day, showing the increasingly close relationship between the Trump family and crypto.

Justin Sun made headlines by moving $9 million worth of World Liquidity Financial tokens. His wallet was then frozen and blacklisted. Sun claims this was just a test and not an attempt to sell, and he is calling for the wallet to be unlocked, as he is an investor just like anyone else. The incident sparked controversy about decentralization, as it showed a project could arbitrarily freeze assets. The story is linked to how the Trump family was restricted by the traditional financial system after his presidency, which led them to turn to crypto. The cases of Justin Sun and others highlight the risks of asset control while also emphasizing the value of Bitcoin and crypto as tools for financial freedom.

France's national debt is growing rapidly due to large spending on pensions, defense, and green transition, compounded by 50 years of continuous budget deficits. It is forecasted that by 2030, public debt could reach 130% of GDP, while interest costs would rise from under 30 billion euros in 2020 to 100 billion euros by the end of the decade, putting immense pressure on the budget. Although the risk of an IMF bailout is low due to France's market access and potential support from the ECB, France's financial situation remains a key factor for the stability of the eurozone, where it is the second-largest economy after Germany.

Sources

• The New York Times
• Fox Business
• Bloomberg
• CME FedWatch Tool
• SEC Official Announcements
• CFTC Official Announcements
• NASDAQ
• MicroStrategy Investor Relations
• MARA Holdings Investor Relations
• Sora Ventures
• AppLovin
• Robinhood
• American Bitcoin
• Justin Sun's X/Twitter
• IMF Official Reports
• The French Ministry of Economy and Finance

Disclaimer

This article is for informational purposes only and should not be considered financial advice. Please do your own research before making investment decisions.